Insurance on demand transaction management system

ABSTRACT

An intermittent risk exposure liability insurance method comprising the steps of: establishing an Internet business site enabled for communication with insurers and insureds through Internet service providers; enrolling the insureds in intermittent risk exposure liability insurance policies, the policies providing for a variable insurance premium rate depending upon an intermittent use of an insured article; logging start and completion times of each intermittent use of the insured article on the Internet business site by the insured; verifying start and completion times of use of the insured article in accordance with the logged start and completion times; and applying and billing premium insurance rates in accordance with the verified and logged start and completion times of use.

RELATED APPLICATIONS

This application claims priority and is entitled to the tiling date ofU.S. Provisional application Ser. No. 60/339,597 filed Dec. 8, 2001, andentitled “Insurance On Demand Transaction Management System.” Thecontents of the aforementioned application are incorporated by referenceherein.

INCORPORATION BY REFERENCE

Applicant(s) hereby incorporate herein by reference, any and all U.S.Patents, U.S. patent applications, and other documents and printedmatter cited or referred to in this application.

BACKGROUND OF THE INVENTION

1. Field of the Invention

This invention relates generally to commercial liability insurance forequipment, vehicles and the like, and more particularly to an Internetbusiness method for adjusting insurance rates for such commercialliability based upon the communication potential of the Internet.

2. Description of Related Art

The following defines the present state of this field:

In its present form construction equipment insurance, for the most part,covers the more mundane untoward events such as fire, theft, possiblysome categories of weather related loses and normal liability exposurefor accidents occurring in an area under the insured's auspices such asa yard. It also has lumped in the policy or as a constant in forceunder, a provision covering the much higher risk exposure of equipmentworking in the field. The underwriter does not know the actual amount ofhigh risk exposure to which a crane will be subject. They must rely onstatistically determined industry usage criteria as a basis forassigning a premium cost. If, in actuality, an insureds usage pattern isbelow the predetermined level than they are, in effect, paying a higherpremium than need be. If they exceed the traditional industry usagethreshold the underwriter is overly exposed because the premium has beendetermined on less than actual job site risk exposure. The presentinvention improves on this by breaking out high risk exposure componentsand providing them through an on demand system. This is advantageous toboth the insurer and the insured if performed as specified in the model.It will result in the insurer providing the high risk component ofcoverage at the appropriate rate for the entire length of the high riskexposure period. The insured on the other hand, only pays for thiscoverage on an as needed basis, it is broken out in specified incrementsand at a predetermined rate.

The prior art teaches the extending of insurance for commercialliability but does not teach an insurance on demand, Internet based,system such as is described and claimed herein. The present inventionfulfills these needs and provides further related advantages asdescribed in the following summary.

SUMMARY OF THE INVENTION

The present invention teaches certain benefits in construction and usewhich give rise to the objectives described below.

The present invention is an intermittent risk exposure liabilityinsurance method comprising the steps of establishing an Internetbusiness site enabled for communication with insurers and insuredsthrough Internet service providers, enrolling the insureds inintermittent risk exposure liability insurance policies of the insurers,the policies providing for a variable insurance premium rate dependingupon an intermittent use, by the insureds, of an insured article,logging start and completion times of each intermittent use of theinsured article on the Internet business site by the insured, verifyingstart and completion times of use of the insured article in accordancewith the logged start and completion times, and applying and billingpremium insurance rates in accordance with the verified and logged startand completion times of use.

The present invention is a process for providing intermittent riskexposure liability insurance comprised of steps establishing an Internetsite enabled for communication with risk assumption entities (RAE's) 300(insurers) and insureds (customers) 100 through Internet serviceproviders, facilitating contractual relationships (policies) forintermittent risk exposure liability insurance, enabling policies to beconfigured to allow for variable premium rates within one transactionbased on changes in risk exposure as a function of time within oneoverall transaction, logging start and completion times of eachintermittent use of the insured article or occurrence of a riskgenerating event on the Internet business site by the insured, verifyingstart and completion times of use of the risk generating article inaccordance with logged start and completion times, and applying andbilling insurance rates in accordance with the verified start andcompletion times.

This invention relates generally to providing liability insurance on anintermittent as needed basis and, more particularly, to management andfacilitation of the transactions that will be required between RiskAssumption Entities (RAE's) 300, primarily, but not limited to,insurance companies and their customers. The present invention teaches aprocess by which the communication potential of the Internet may be usedas a utility to provide Insurance On Demand.

This model provides another incidental benefit by making the insurancecomponent cost of operating a piece of equipment readily apparent. Thisin and of itself is a convenience factor when customers, the insured,are establishing their rates or determining net profit on a job. In someinstances equipment owners may choose to mark this cost component up andpossibly even break it out on their customer's invoice. This would besimilar to what is done in the car, truck and equipment rentalbusinesses at considerable profit to those entities.

This model will also be configured to enable consumers instantaneousaccess to auto, truck or equipment insurance “On Demand” to satisfyrental agency requirements at more economical rates. This process willfurther accommodate the insurance needs of seldom used private orcommercial vehicles, recreational equipment or unusually hazardousundertakings. In short, this process is designed to facilitate theproviding of intermittent insurance coverage regardless of how the riskis generated.

A primarily objective of the present invention is to provide a liabilityinsurance method having advantages not taught by the prior art.

Another objective is to provide such a method capable of reducing thecost of insurance and the exposure of insurers.

A further objective is to provide such a method capable of providinginstant insurance coverage for standard liabilities.

A still further objective is to provide such a method capable ofverifying the physical location of an insured equipment.

Other features and advantages of the present invention will becomeapparent from the following more detailed description, taken inconjunction with the accompanying drawings, which illustrate, by way ofexample, the principles of the invention.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram operational overview of the subject system;

FIG. 2 is a block diagram identifying the principle data processingmodules of the present invention;

FIG. 3 is a block diagram data exchange interactions between dataprocessing modules of the subject system;

FIG. 4 is a flow diagram of possible data exchange between dataprocessing modules of the subject system and entities external to thesystem.

DETAILED DESCRIPTION OF THE INVENTION

The present invention teaches a business model that will have thefollowing features and benefits not taught by prior art. The model willpermit instantaneous access to a Risk Assumption Entity (RAE) 300 forintermittent risk exposure. The model will facilitate customers 100ccess to risk coverage at pre-negotiated rates based on predeterminedcriteria which will be constantly updated. Customers 100 will be able toassist in this update process. They may seek to expand or contract theirrisk coverage portfolio at will. Coverage will be able to be secured fordifferent dollar amount liability requirements such as a contract thatmay require higher liability coverage or a venue such as a private lakethat may require proof of a particular level of coverage before onecould use a watercraft there. The model will allow RAE's 300 to moreclosely target their risk exposure and adjust premiums accordingly sincethe model mostly addresses exposures of a shorter duration. The modelmay also allow for the bundling of risk exposures of a certain type intoa financial instrument that may be traded to allow a company to hedgeexcess exposure in a particular category. This may also introduce marketforces that may be triggered by changing risk factors or capitalavailability. A RAE 300 may choose to build a particular portfolio basedon specific risk scenarios they have deemed to be in their bestinterest. The foregoing will be accomplished by the use of the

Internet Wireless technology and the Satellite Global Positioning systemin the following manner:

-   -   (A) Proprietary software will be written which will provide        secure internet communication between the individual or        commercial enterprise with a risk exposure and an RAE 300 such        as, but not limited too, a coverage pool or insurance carrier        Access to this facilitation process may be by subscription to        both the potential insured and the RAE 300.    -   (B) This software will securely maintain customer provided        information and constantly cross check if with other pertinent        data bases to maintain an accurate risk worthiness profile.    -   (C) Pre-negotiated rates will be based on the profile mentioned        above. Criteria for rate adjustments will also automatically be        made when the pre-established rate change thresholds are        reached.    -   (D) The software will further consider more random factors such        as but not limited too current weather and the time of day a        piece of equipment may be working.    -   (E) The software will have the ability to cross check in force        policies to provide an insured with information indicating there        may be coverage enforce that may mitigate a portion of their        risk but are provided by a third party thus avoiding “double        coverage” situations.    -   (F) wireless technology in concert with Satellite GPS will        facilitate verification of equipment locations and work hours. A        proprietary module will be developed that will utilize the        previously mentioned technologies in order to verify working and        non-working times in addition to location for a given piece of        equipment. This will be possible as a result of the shrinking of        devices their concomitant lower power consumptions and the time        component inclusive in the GPS algorithms.        Acronym Key    -   1. I.R.E.=Intermittent Risk Coverage    -   2. R.A.E.=Risk Assumption Entity    -   3. S.I.M.=Secure Internet Means    -   4. C.C.E.=Continuous Criteria Evaluator

Customer 100 Requests Specific Type of Intermittent Risk Coverage(I.R.C.) from Risk Assumption Entity (R.A.E.) 300 by Secure InternetMeans (S.I.M.), Telephonic or other unspecified means

R.A.E. 300, receives the request and determines if the coverage poolcontains the category requested.

The model anticipates that claims for customer loses due to insured riskevents will be handled through channels already established by R.A.E.'s300 (insurance companies primarily) to service their existing clientbase. The model however, will utilize instantaneous internet access toexpedite the claim settlement process. This access will aid the insuredin administering it, and any service providers involved in thesatisfying the claim. This process will be facilitated by softwaredesigned for this express purpose.

The Constant Criteria Evaluator, in addition to updating risk and rateassessments, will monitor all facets of customer 100 service. This willbe accomplished by the use of proprietary software integrated into thedesign of the C.C.E. 240.

Means by which a rate is generated by a data module specificallyconfigured for this purpose by means of its internal algorithm.

Means by which the “rate clock” for a given risk exposure is started,stopped or predetermined start/stop times are amended.

Means by which a contract is prepared in parallel to a customer's 100application for service and/or completing information templates relatingto their coverage need and requests.

The processes' Constant Criteria Evaluation function whereby anaccount's risk worthiness profile is constantly monitored and updated.

Means by which risk exposures of various types may be “bundled” into afinancial instrument and traded to allow a company to hedge/mitigate itsexposure in a certain category.

The present Invention is Capable of Achieving the Following:

Enrolling the insured in intermittent risk exposure liability insurancepolicies of the insurers, the policies providing for a variable premiumrate depending upon variable risk exposure during an intermittent use,by the insured, of an insured article:

The step of verifying locations is enabled using a global positioningsatellite method to determine the location of the insured article andcommunicating this information to the process databases by wirelessmeans.

The step of posting of the insurance premium rates and insurance premiumthresholds for various coverage categories for an account with a givenrisk worthiness profile score on the Internet site and of adjusting theposted premium rates and thresholds as necessary.

A further capability is to provide a means for potential a insured todetermine premium rates for a particular intermittent risk exposureindependent of the application and contract management phases of theprocess.

Another capability of the process is to reduce the cost of riskmitigation (insurance) for an insured and limit unnecessary riskexposure of insurers.

A further capability of the process is to enable providing instantinsurance coverage for standard liabilities such as rental vehicles andthe like.

A still further capability is to provide, within the process, a methodof verifying the physical location and state of use of an insuredequipment.

Another capability of the process is to facilitate the billing andsettlement portions of contract management.

A further capability of the process is to allow individuals and businessentities to apply for coverage via the Internet and have their riskworthiness profile evaluated as they apply.

A further capability of the process is to provide a means of constantlyupdating the risk worthiness profile and adjusting rates accordingly.

A further capability of the process is to expedite a customer'ssucceeding transactions by a means configured to learn the customers 100equipment usage pattern and risk mitigation needs and then tenderselection templates of coverage options closely matching theirhistorical needs and requests.

The Invention Provides a Means by Which:

A rate is generated by a data module specifically configured for thispurpose by means of its internal algorithm.

A rate clock for a given risk exposure is started, stopped orpredetermined start and stop times are amended.

A contract is prepared in parallel to a customer's 100 application forservice and their completing information templates relating to theircoverage needs and requests.

An account's risk worthiness profile is constantly monitored andupdated.

Risk exposures of various types may be “bundled” into a financialinstrument and traded to allow a company to hedge and thus mitigate itsexposure in a certain category.

The Present Invention is Further Enabled for:

Enrolling the insureds in intermittent risk exposure liability insurancepolicies of the insurers the policies providing for a variable premiumrate depending upon variable risk exposure during an intermittent use bythe insureds, of an insured article.

Verifying locations using a global positioning satellite method todetermine the location of the insured article and communicating thisinformation to the process databases by wireless means.

Posting of the insurance premium rates and insurance premium thresholdsfor various coverage categories for an account with a given riskworthiness profile score on the Internet site and of adjusting theposted premium rates and thresholds as necessary.

The Following Examples Further Define the Present Method:

Enrollment

An applicant will register to use the present invention method byaccessing the dedicated Uniform Resource Locator (URL) for the system'swebsite and completing a template questionnaire. This process will beaccomplished by a system of hierarchical queries that, as satisfied,will lead to ever more detailed rate influencing information well knownto those skilled in the alt of risk management.

It should be noted, when the applicant or customer 100 begins to fill inthe application template they are immediately issued an Accountidentification Number (AIN) for tracking purposes internally within thesystem. This AIN is not published to the applicant until they satisfythe application requirements to the satisfaction of the CCE 240. An AINis the customers virtual passport to navigate and avail themselves ofthe features and benefits of the system.

An alternative method of customer registration is accomplished throughtraditional Risk Assumption Entities (RAE's) 300 that have a website andhave opted to provide their customers 100 the option of managing theirrisk on as as needed basis. On the RAE's 300 website home page, thepresent invention system option is displayed. The customer clicks onthis option and is required to supply the RAE's 300 account identifyingdata. Once this is accomplished, to tile satisfaction of the RAE 300,the customer's data, necessary to fulfill the application requirementsof the systems' CCE 240, CMM 230, and TMM 250 Modules, is transferred,in a format recognizable and utilizable by the system, to these modulesas per a prior affiliation agreement (It is, of course, assumed in thisembodiment that the affiliate RAE 300 will have all of the customer'spertinent rate influencing information on file). The initiation of thistransfer processes causes the system to assign an AIN to this customer.

(Please see the Glossary for a Definition of Affiliation Agreements)

In either case, after satisfying the registration requirements, a riskprofile will be determined based on the ability of the Constant CriteriaEvaluator (CCE) 240 to verify the information provided and a riskworthiness profile score will be established. Alter a Risk WorthinessProfile Score (RWPS) has been established, the customer's AIN ispublished to them to facilitate their progressing through the succeedingsteps in securing risk mitigation (insurance). (See customer decisionand action sequence}

If information is immediately unverifiable this fact will be made knownto the customer. Depending on the weight given to the criteria that isunable to be verified, the risk worthiness profile score will beadjusted upward. An upward adjustment will require an applicant to pay acorrespondingly higher premium for a given coverage package.

This AIN will be used henceforth by the customer when they log on to thesystem website and by the present invention system to issue coveragebinders and update the customer's risk worthiness profile. Once an AINhas been issued a customer can use an expedited transaction process torapidly be issued a binder for a given risk activity.

Whenever the AIN is entered it will cause the system to peruse the riskworthiness profile associated with the AIN before allowing rates to bequoted and coverage bound for any given risk event or activity.

An influencing factor in establishing a risk worthiness profile would beexperience a particular customer has in the activity in which theyintend to engage.

The customer's AIN will be linked to other pertinent identificationnumbers such as an individual's birth date, Driver's License and SocialSecurity Numbers. In the case of a business entity it could be linked toa company's Tax I.D., Corporate Registration or Resale Numbers. Thiswill be done to negate the risk of using the wrong risk worthinessprofile score or inaccurate information in determining a score

Truck Rental Scenario

A small company or individual needs to, rent a large truck. The rentalagency has specific requirements regarding liability insurance that mustbe satisfied before they will rent a vehicle. The customer's 100 vehicleliability insurance has a very high deductible threshold before the RiskAssumption Entity (RAE) 300 assumes responsibility for a claim. Therental agency offers coverage on a daily basis, but the customer findsthe premium to be very high, in their judgement, and decides to seek analternative. The customer is aware that certain insurance carriers,RAE's 300, offer insurance on an intermittent as needed or “on demandbasis” by means of the present system.

The following is a customer's 100 Contact, Decision and Action sequencefor the rental or a large truck by means of initial contact with thesystem via an Internet site.

-   -   1. The customer 100 contacts the present invention system by        accessing the system's Internet site through the use of the        present invention system Uniform Resource Locator (URL) which        causes. . . .    -   2. The homepage to display a menu of options one of which is “do        you wish an explanation of the Insurance On Demand Transaction        Management System (IODTMS) 200.” The customer opts by clicking        to receive an explanation which causes. . . .    -   3. The system displays an “orientation” synopsis of the services        provided and the method of operation of the IODTMS 200. A roster        of participating RAE's 300 is provided as part of the        orientation process. At the end of the synopsis the customer is        Liven the option of applying for service from the system. The        customer 100 opts to do so which causes. . . .        NOTE: The customer 100 is offered the option of more in depth        information on the various features and benefits of the system        at various intervals within the synopsis.    -   4. The Internet site to display a menu/template requesting rate        influencing information from the customer 100. The template        proceeds hierarchically from the general to the increasingly        specific (the necessary rate influencing information sought is        well known to those skilled in the art of risk mitigation). This        information is used to establish a Risk Worthiness Profile Score        (WRPS) for this particular customer (see the Glossary for an        explanation of the WRPS). At the initiation of the application        process an Account Identification Number (AIN) will be issued to        the applicant, however the AIN is not immediately published to        the customer 100. When the customer is issued an AIN, the        present invention system Transaction Management Module (TMM) 250        will begin preliminary stages of contract preparation. The TMM        continues to prepare the contract in parallel with the        customer's decision sequence responses, utilizing information        derived therefrom. The completion of the application template        process (to the satisfaction of the present invention system        Constant Criteria Evaluator (CCE) 240 triggers the disclosure of        the AIN to the customer which causes. . . . (see the Glossary        For and explanation of the CCE 240.    -   5. The notification to the customer that they have been issued        an AIN causes the system Coverage Module (CM) 230 to display a        template of various risk categories for which coverage is        offered through the IODTMS 200. In this case, the customer 100        selects the category “Vehicle” which causes. . . .    -   6. The present invention system CM 230 to display a template        containing several subcategories, one of which contains the        heading “Truck.” The customer selects the heading “Truck” at        which time a template is displayed requesting specific        information about the truck and the circumstances of its        intended liability exposure (ie. Make/model, GVW (gross vehicle        weight), that it will or won't be used for specified hazardous        material hauling, alternate driver, etc. The customer 100        satisfies these queries which causes. . . .    -   7. A template to be displayed requesting the level of coverage        dollar amount the customer 100 desires. This template will also        request the customer 100 to specify the time increments in which        they wish to be billed. Completion of this template causes. . .        .    -   8. The present invention system to display a template which        includes the rate for the requested coverage in the RWPS        category of the customer 100. The template offers the customer        the option of accepting or declining coverage at the displayed        rate. This template will also display invoice settlement options        from which the customer 100 may select. The options displayed        from which the customer 100 selects are dependent upon the        customers RWPS and their previous relationship with affiliate        RAE's 300. Their selection will be incorporated in the final        contract. The customer's selecting a settlement option causes. .        . .    -   9. The selection of a settlement option is interpreted by the        present invention system as an indication that the customer 100        wishes to enter into a contract, with all its previously        enumerated terms and conditions for risk mitigation (insurance)        with a participating RAE 300, at the displayed rate, utilizing        the present invention system by acknowledging acceptance by        clicking in the space provided on the template which causes. . .        .    -   10. A template to be displayed requesting the customer 100 to        enter the time at which the rate clock is to start (ie. On        issuance of a “binder” or some future time specified by the        customer 100). Satisfaction of this requirement causes. . . .    -   11. Upon satisfaction of the present invention system's request        for the rate clock start time (they may enter a predetermined        stop time as well per the rate clock protocol explained in the        Glossary), the customer 100 is shown an electronic        representation of their contract with the selected RAE 300 and        they electronically verify and acknowledge their approval of the        agreement (electronically sign) the contract which causes. . . .    -   12. The customer to be issued an electronic binder with their        AIN and a code number that has been assigned to the completed        contract for reference at any time.    -   13. The customer rents the truck, no claim generating event        occurs And the truck is returned to the rental company which        causes. . . .    -   14. The rate clock to be stopped in one of the following        manners:    -   A. The predetermined rate clock stop time (as per tile start and        stop template in #11 of this sequence) passes triggering the        cessation of the RAE's 300 “risk exposure” and thus the        customer's coverage.        OR    -   B. The customer accesses the present invention system Internet        site and navigates through the rate clock stop process via a        template to facilitate selection of start and stop times and        amendment of start and stop times. At this time they will stop        the rate clock (see the explanation of this process in the        Glossary).    -   15. Stopping the rate clock causes the TMM 250 to prepare an        invoice as per the governing contract between the customer and        the RAE 300. This invoice is immediately transmitted to the        customer as per procedures established in the TMM 250.    -   16. Settlement is Accomplished by means of debiting a credit        card account (the number of which will have been acquired during        the application process), by debiting a balance held on account        or by billing the customer according to other contractually        specified terms (as per #8 in this sequence).    -   17. A claim generating event occurs and the customer contacts        the present invention system claims adjustment representatives        by accessing the Customer Service Module (CSM) 270 from the        present invention system Internet site homepage (see the        Glossary for an explanation of the CSM) 270.

Below is an example of a typical risk generating situation in which theInsurance On Demand Transaction Management System present inventionsystem may be employed to provide liability insurance. Following thescenario is a customer interaction sequence necessary to secureliability coverage from a Risk Assumption Entity (RAE) 300 (RAE's 300are primarily insurance companies) that is affiliated with the IODTMS200.

Crane Rental

A steel building election company owns a crane that is usedintermittently. They occasionally rent the crane when it is not requiredon their own job sites. The company has analyzed their intermittentusage pattern and the varying liability coverage (dollar amount)requirements of different work venues, and opted to insure theiroperational (high) liability on an “as needed” or “on demand” basis.They have accomplished their goal by doing business with an RAE 300 thatutilizes the IODTMS 200 system utility.

It is assumed, for the sake of the following illustration, that theirpresent RAE 300 would have all pertinent rate influencing data on file.It is further assumed that, through the RAE's 300 prior affiliationsagreement with the IODTMS 200, all customer information will beformatted to facilitate its transfer to, and use by, the IODTMS 200.

NOTE: After initial registration and issuance of an AccountIdentification Number (AIN), the customer 100 will be able to expeditefuture intermittent liability insurance transactions by entering the AINas soon as they access the website.

Glossary Attached: An explanation of the configuration and function ofInsurance On Demand Transaction Management System modules, referred toby acronym can be found in the attached glossary. This is true, as well,of other terms the reader may encounter that are specific to thisdocument.

The following is a Customer's 100 Contact, Decision and Action Sequencefor a Crane Use Risk Mitigation (Insurance) Transaction as a result ofinitial contact with their current RAE (Insurance Provider)

-   -   1. The participating RAE 300 has a website with a dedicated URL.        The customer 100 accesses this website.    -   2. On the RAE's, 300 homepage, the present invention system        option is displayed. The a customer 100 accesses by clicking on        this option and is required to supply the RAE's 300 account        identifying data. Once this is accomplished, to the satisfaction        of the RAE 300, the customer's, data, necessary to fulfill the        requirements of the present invention system CCE 240, CM 230,        RGM 260 and TMM 250 Modules, is transferred, in a format        recognizable and utilizable by the present invention system, to        these modules as per a prior Affiliation Agreement (see        glossary). The initiation of this transfer process causes the        present invention system to immediately assign an Account        identification Number (AIN) to this customer, however the AIN is        not immediately published to the customer. The CCE 240 must        process and evaluate the customer's information, provided via        the affiliated RAE 300, to establish a Risk worthiness Profile        Score (RWPS) before the AIN may be published to the customer.        (The Functions of RWPS and CCE 240 are Explained in the        Glossary.)        NOTE: After the data transfer process is accomplished and an AIN        is issued and published to them, it will only be necessary for        the customer to enter their AIN when they access the website of        the present invention system or their original RAE 300 to        initiate Future transactions. The customer will also be able to        obtain just the premium rate for a particular coverage category        in an expedited fashion once they have an AIN.        NOTE: When the customer 100 is issued an AIN, the Transaction        Management Module (TMM) 250 (the function of which is explained        in the glossary) will begin preliminary stages of contract        preparation. The TMM 250 continues to prepare the contract in        parallel with the customers 100 decision sequence, utilizing        information derived therefrom.    -   2A. When the present invention system data requirements have        been fulfilled, the IODTMS 200 issues and displays, to the        customer 100 their respective present invention system AIN.    -   3. The notification to the customer that they have been issued        an AIN causes the CM 230 to become engaged in the transaction        process and to display a menu of various risk categories for        which coverage is offered through the IODTMS 200.    -   4. The customer 100 selects the category “Heavy Equipment.”    -   5. The CM 230 displays a menu containing several sub-categories,        one of which contains the heading “Crane.”    -   6. The customer 100 accesses by clicking on the heading “Crane”        at which time a template is displayed requesting specific        information about the crane and the circumstances of its        intended liability exposure (ie. make and model, lifting        capacity, any previous equipment failures on it, the hours of        anticipated operation (day or night, high traffic) and the        like).    -   7. The customer 100 satisfies these queries which causes a        template to be displayed requesting the level of coverage        (dollar amount) the customer desires. This template also        requests the customer 100 to specify the time increments in        which they wish to be billed. At this point in the decision        sequence the customer may be offered the variable coverage        option if they are eligible (please see the glossary for an        explanation of the variable coverage option).    -   8. The customer 100 completes the previous template which causes        the present invention system CM 230, after communication with        the Rate Generation Module (RGM) 260 (see the glossary for an        explanation of the RGM's 260 function), to display the rate for        the requested coverage in the Risk Worthiness Profile Score        category of the customer. The Rate is displayed as per the time        increment specified by the customer 100 for billing. Alternative        time increment billing rates may also be displayed at this time        for the customer's 100 comparison.    -   9. A template is displayed by the CM 230 offering the customer        100 the option of accepting or declining coverage at the        displayed rate. This template will also display invoice        settlement options from which the customer may select. Their        selection will be incorporated in the final contract. The        options displayed from which they may select are dependent upon        the customers 100 RWPS and their previous relationship with the        affiliate RAE 300.    -   10. The customer 100 opts to enter into a contract with its        attendant terms and conditions, for risk mitigation (insurance)        with an RAE 300, at the displayed rate, utilizing the present        invention system by acknowledging acceptance (clicking) on the        space provided in the template    -   11. A template is then provided for the customer to enter the        time at which the rate clock is to start (ie. On issuance of a        “binder” or some future time specified by the customer 100).    -   12. Upon satisfaction of the present invention system request        for the a rate clock start time (they may enter a predetermined        stop time as well as per the rate clock protocol explained in        the glossary), the customer 100 is shown an electronic        representation of their contract and they electronically verify        and acknowledge their approval of the agreement (electronically        sign).    -   13. The customer 100 is issued an electronic binder with their        AIN and the contract code number that has been assigned to the        completed contract for reference at any time.    -   14. The customer 100 dispatches the crane to the job, site the        work is completed successfully, no claim generating event occurs        and the crane returns to the relative safety of the company's        equipment yard (if a claim generating event occurs, see #18 in        this sequence).    -   15. In this embodiment, the return of the crane to the company's        yard completes the “risk exposure”. The rate clock would now be        stopped in one of the two following ways:

The predetermined rate clock stop time passes triggering the cessationof the RAE's 300 risk exposure and thus the customer's coverage.

The customer 100 accesses the website and navigates through the rateclock stop process and stops the rate clock (Please see the explanationof this procedure in the glossary).

-   -   16. Stopping the rate clock causes the TMM 250 to prepare an        invoice as per the governing contract between the customer 100        and the RAE 300. This invoice is immediately transmitted to the        customer as per the Rate Clock Protocol enumerated in the TMM        250 (this function of the Transaction Management Module (TMM)        250 is explained in the glossary).    -   17. Settlement is accomplished by means of debiting a credit        card account (the number of which will have been acquired during        the application process), by debiting a balance held on account        or by billing the customer 100 according to other contractually        specified settlement terms (as per #9 in this sequence).    -   18. A claim generating event occurs and the customer contacts        the present invention system claims adjustment representatives        by accessing the Customer Service Module (CSM) 270 from the        present invention system home page (please see the glossary for        a description and flow chart for the present invention system        claim settlement procedure via the Customer Service Module).

The following terms are defined as to meaning and usage in the presentapplication in the glossary below:

Affiliation Agreement: A prior affiliation agreement will be required ofall present invention system participating Risk' Assumption Entities(RAE's) 300. This agreement specifies standard terms and conditionsunder which all affiliated RAE's 300 (insurance companies) will contractwith insureds to provide liability coverage in a given risk exposurecategory. These conditions will include, but are not limited to,agreeing to abide by premium rates set by the IODTMS 200 for a givenrisk exposure, agreeing to the present invention system method ofsetting, rates for individual account's (AIN's) in a risk category bymeans of a Risk, Worthiness Profile Score (RWPS) determined by thepresent invention system and the method by which risk exposure intervalsare determined by the present invention system Rate Clock Protocol(RCP). In addition the affiliate agreement may limit coverage categoriesfor which a particular RAE 300 will agree to assume risk.

AIN=Account Identification Number: This is the “tracking number”assigned to an applying entity (customer) 100 when the applicationprocess is initiated. This number will be cross-referenced with othernumbers particular to a customer such as, but not limited to, birthdate, driver's license, corporate registration or tax identificationnumbers. After initial registration with the IODTMS 200 the customerwill input their AIN upon contacting the present invention systemInternet site to expedite their transactions.

APM 220=Application Processing Module: This module processes rateinfluencing information provided by customers that access the presentinvention system Internet site directly. It solicits information fromcustomers through a system of menu templates that proceed through ahierarchy from the general to the increasingly more specific (necessaryrate influencing information sought is well known to those skilled inthe actuarial art of risk mitigation). Through its evaluation anddecision algorithm and interaction with the CCE 240 the APM 220 willdetermine the veracity, completeness, and accuracy of informationprovided by customers and will, to the extent technologically possible,notify applicants, in real time, of any discrepancies to afford them theopportunity to make immediate corrections to their application. Thecustomer's Account Identification Number (AIN) is issued and aftersatisfaction of information criteria, published to the customer by theAPM 220 through interaction with the Constant Criteria Evaluator (CCE)240. The APM 220 also transmits information it receives to theTransaction Management Module (TMM) 250 to enable the TMM 250 to beginthe contract preparation process in parallel with the applicationprocess.

CCE 240=Constant Criteria Evaluator: This present invention systemmodule is the system's central interactive database. This device is therepository of all customer 100 risk worthiness and account history data.It will be so configured as to constantly evaluate and reconcilecustomer 100 data on file or received at the time of application andregistration with that found in other pertinent databases that haveacquired more current information. This external data source could be,but is not limited to, a state motor vehicle department. This functionwill be accomplished by means of a “constant query device” such as, butnot limited to, an Internet “web crawler,” that, in effect, will carry acustomers 100 risk worthiness profile with it as it peruses otherdatabases for a real time comparison. When a discrepancy betweeninformation in the customer's 100 baseline risk worthiness file and apertinent database is discovered and verified, the risk worthiness filewill be updated. If the updated information tends to degrade the RiskWorthiness Profile Score (RWPS), an adjustment may be made in the ratesassigned for risk assumptions undertaking after the time of the updateto the RWPS.

A positive enhancement may also result if a negative factor has aged tothe degree that it no longer warrants negative weighting with respect torate-influence. (The data gathering function of the CCE 240 will beperformed within the constraints of all statutory privacy provisions aswell as limited powers of inquiry delegated by applying customers afterthey have been duly informed of the use to be made of the authorizedgleaned information). The CCE 240 also provides decision influencinginformation to other specialized modules within the present inventionsystem on a real time basis, thus optimizing the processing ofinformation by those modules evaluation and decision algorithms.

CM 230=Coverage Module: The CM 230 is accessed either through initialcontact with a present invention system affiliated RAE 300 or by initialcontact with the present invention system Internet site directly. Aftera customer has been issued an Account Identification Number (AIN), theCM 230 provides menu templates of articles and activities for which thepresent invention system may provide coverage. When a customer selects acategory, the CM 230, by means of its evaluation and decision algorithm,requests specific information necessary to complete a risk assumptioncontract (insurance policy) with an RAE 300. The CM 230 alsocommunicates with the Transaction Management Module (TMM) 250 in theprocess of preparing a contract that begins at the initiation of theapplication processes and proceeds in parallel as information isprovided by the customer The CM 230 further communicates with the RateGeneration Module (RGM) 260 to enable the CM 230 to quote a premium ratefor a given coverage package.

CSM 270=Customer Service Module: The CSM 270 will, by means of itsevaluation and decision algorithm, function as a “clearing House” tocustomer inquiries regarding a prior contract or a contract in progressit will aid customers in all preliminary claim preparation functions toexpedite service from the claims adjuster designated by the RAE 300which assumed the risk for which the liability claim is to be filedCustomer initiated the updates will be accomplished by the CSM 270.These include, but are not limited to, updating rate influencing orcredit information and change of electronic or physical address by meansof the CSM's 270 interaction with the Constant Criteria Evaluator (CCE)240. The CSM 270 will be the point of contact for billing inquiriesthrough interaction with the Transaction Management Module (TMM) 250.The CSM 270 will interact with any and all present invention systemdatabases to satisfy customer information requests. The CSM 270 willalso be the IODTMS 200 point of liaison with designees of affiliateRAE's 300 to access the system as needed to perform the functions forwhich they have been assigned by a particular RAE 300. An example ofsuch a designee would be claims adjusters or a third party contractsettlement house that may be designated to collect premiums. Theseexamples are not to be construed to limit the function of the CSM 270 inany way.

ICORM 210 initial Contact, Orientation, and Routing Module: This module,by means of its evaluation and decision algorithm displays the initialcontact menu on the present invention system Internet site. Potentialinsureds (customers) select from the options displayed such as, but notlimited to: “Would you like an explanation of our system and services?”“Would you like to apply for risk mitigation (insurance)?” “Enter yourAIN if it has been issued previously to expedite this transaction” or“Do you wish information regarding a prior transaction?” he presentinvention system will additionally, by means of its evaluation anddecision algorithm, provide orientation information including, but notlimited to, an overview of the concept of Insurance On Demand, acomparison of the present invention system with traditional riskmitigation models and all legally required disclaimers from within theICORM 210 database. Based on initial menu selections made by customers,they are routed to appropriate databases within the present; Inventionsystem. For example, if a customer answers the initial contact menuquestion “Do you need to file a claim?” affirmatively, the insured willbe routed by the ICORM 210 to the Customer Service Module (CSM) 270 forinitial claim processing and liaison with their contracting RAE's 300designated claims adjuster. In another example, if an insured enterstheir previously issued AIN they will be asked via a menu displayed “ifthey wish to duplicate a type of prior transaction.” If the insuredanswers affirmatively, they will be routed to the CSM 270 foraccommodation of their request.

RAE 300=Risk assumption Entity: Risk Assumption Entities are to beconsidered as any business entity configuration whose partial or solefunction is to provide the opportunity for the mitigation of risk(insurance). In the main, this primarily includes insurance companiesbut RAE's 300 may assume other forms to provide actuarially determinedrisk management opportunities.

RCP=Rate Clock Protocol: The Rate Clock Protocol is contained within theTransaction Management Module (TMM) 250. It operates by means of anevaluation and decision algorithm that enables insureds to predeterminethe interval for which they desire liability coverage. It also providesa means of allowing the start and stop times of an interval to beentered in the contact at a later date if the actual exposure intervalis not precisely known at the inception of the contract. The rate clockalgorithm is also designed to accommodate the amendment of rate clockstart and stop times defining a risk exposure interval, if it iswarranted under the terms of the governing contract. This algorithm isfurther designed to record rate clock start and stop times of segmentsof different risk levels within one overall transaction to enable thepresent invention system to provide a variable coverage option and thevariable premium rates attendant to such an option.

RGM 260=Rate Generation Module: The RGM 260, by means of its distinctevaluation and decision algorithm, establishes rates for particularRAE's 300 risk assumptions by means of actuarial determinants well knownto those skilled in the art of risk mitigation (insurance). In addition,the RGM 260 nteracts with remote databases, through the ConstantCriteria Evaluator (CCE) 240, to compare the RGM's 260 determinationswith industry standards. The RGM 260 determines premium rates in allcategories based upon a proprietarily established risk worthiness scale.The RGM 260 interacts with the Coverage, Module (CM) 230 to provide theCM 230 with requested premium rates on specific risk exposures in orderthat rates may be communicated to potential insureds. This notificationto insureds may be accomplished as they are actively seeking coverage(during the preparation of a contract) or merely to provide potentialinsureds premium rate information so they may refer to it as a riskmitigation (insurance) option. Also through the CCE 240, the RGM 260 mayuse external event criteria such as, but not limited to, severe weatherpredictions in an area on a real time basis to adjust rates before theyare quoted.

RWPS=Risk Worthiness Profile Score: A risk worthiness profile isdetermined by comparing rate influencing information provided by theregistering or applying entity with databases that may contain therequested information to determine the veracity or completeness of thatprovided by the registering entity. Once compiled, this information iscompared with baseline risk worthiness profile standards well known tothose skilled in the actuarial art of risk mitigation in addition toproprietary standards of the present invention system to determine andissue a proprietary Risk Worthiness Profile Score for an applyingentity.

TMM 250=Transaction Management Module: The TMM 250 receives input fromthe Application Processing Module (APM) 220 and the Coverage Module (CM)230 to enable this module by means of its distinct evaluation anddecision algorithm to prepare a risk mitigation contract (insurancepolicy) in parallel with the APM 220 nd CM 230 as those nodules receivethe potential insureds data. The TMM 250 contains the risk exposure RateClock Protocol (RCP) algorithm. The TMM 250 prepares invoices as perpremium rates and verified risk exposure intervals. The TMM 250transmits these invoices to insureds immediately after preparation. TheTMM 250 administers the settlement of an account by means specified inthe contract; especially, but not limited to, by means of credit card,debit card or account debit transactions. The TMM 250 distributesproceeds of the settlement of a particular contract (policy) to the RAE300 that was the risk assuming patty named in that contract. The TMM 250also monitors claims settlement procedures that are most particularlythe province of the Customer Service Module (CSM) 270. The TMM 250transfers pertinent account data to the Constant Criteria Evaluator(CCE) 240 for archiving.

Variable Coverage Option: Generically, within the present inventionsystem, tile variable liability coverage option entails the assumption,by the RAE 300, of different levels of risk within one overalltransaction which allows the RAE 300 to access premium rates concomitantwith these varying risk levels. This option, in order to becontractually exercised, must be selected at the initiation of acontractual risk assumption by an RAE 300. Specific types of articlesand their usage may be particularly suited to this type of riskmanagement because of clear delineations of risk level in the usagepattern of the article. A crane, for instance, may be caused to go onstandby status at a job site which reduces its liability exposure fromthat which it would experience under active operation. With the variablecoverage option, the cranes owner will he able to change to a lowerlevel of coverage during the standby period with its attendant lowerpremium assessment. This will be accomplished by means of a variablerate evaluation and decision algorithm protocol within the TransactionManagement Module (TMM) 250. The TMM 250 will be accessed through theInitial Contact, Orientation and Routing Module ICORM) 210. The variablecoverage option, when exercised, will neccessitate alteration of theindividual transaction rate clock protocol established at the outset ofthe contract. Provision for this accommodation has been made within theevaluation and decision algorithm of the TMM's 250 Rate Clock Protocol(RCP).

While the invention has been described with reference to at least onepreferred embodiment, it is to be clearly understood by those skilled inthe art that the invention is not limited thereto. Rather, the scope ofthe invention is to be interpreted only in conjunction with the appendedclaims and it is made clear, here, that the inventor(s) believe that theclaimed subject matter is the invention.

1. A method of providing on-demand access to intermittent risk exposureliability insurance, comprising: (a) establishing an Internet Web site;(b) providing access to said Internet Web site to a plurality ofinsurers and an insured; (c) requesting, through said Internet Web site,insurance coverage for the insured from the plurality of insurers; (d)issuing an insurance policy for the insured and preparing an insurancecontract, wherein said issuing and preparing are performed in realtimeand in parallel; (e) specifying, by the insured through said InternetWeb site, a plurality of future time periods wherein the insured isexposed to said intermittent risk, wherein each future time periodcomprises a start time and a completion time; (f) as time progresses,allowing the insured to amend the plurality of future time periodsthrough said Internet Web site, wherein each amended future time periodhas not occurred, and wherein said amending comprises at least one of:(i) modifying the start time if the start time has not occurred; (ii)modifying the stop time if the stop time has not occurred; (g) loggingthe actual start time and actual completion time of each future timeperiod via said Internet Web site, wherein the future time period hasoccurred; (h) providing said insurance coverage for the insured, whereinsaid insurance coverage comprises coverage for said intermittent riskexposure liability based upon the occurred time periods, wherein eachtime period is specified by an actual start time and an actualcompletion time; (i) terminating said insurance coverage after allfuture time periods have occurred.